1.) ABC Company regularly buys merchandise from DEF Co. and is allowed a trade discount of 20% from the list price. Crossings made a purchase on March 20, 2016, and received an invoice with a list price of P150, 000, a freight charge of P2, 500, and payment terms of net 30 days.

Required: What is the total cost of merchandise purchased?

The total cost of merchandise is

2.)

The book value of the XYZ Tradings inventory at year end of 2016 is P9, 500, 000. Included in the amount are the following items:

1. Merchandise in transit, purchased FOB shipping point, P680, 000
2. Goods held on consignment, P500, 000
3. Goods out on consignment, at cost plus 50% mark up on cost plus P10, 000 delivery charge, P610, 0000

Required: What is the correct amount of inventory?

The correct amount of inventory is

3.)

Flint Co. records purchase discounts lost and uses perpetual inventories. Prepare journal entries in general journal form for the following:

(a) Purchased merchandise costing 900 with terms 2/10, n/30.

(b) Payment was made thirty days after the purchase.

Required: What is the correct Accounts Payable (a) and Purchase Discounts Lost (b)?

(a) Accounts Payable

(b) Purchase Discounts Lost